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How Fuel Prices Are Changing Used Car Demand and What That Means for You

Andrew Maddocks

by Andrew Maddocks

Dec 02, 2025

How Fuel Prices Are Changing Used Car Demand and What That Means for You

Few factors influence the used car market more than fuel prices. When petrol or diesel costs rise, drivers begin to rethink their choices, shifting from large engines to smaller, more efficient vehicles. Over the past few years, global oil fluctuations, government emission targets and advances in hybrid technology have reshaped what buyers are looking for.
At Stebbings Car Superstore, we have seen these changes firsthand. From diesel SUVs to petrol hatchbacks and hybrid family cars, buyer behaviour has evolved rapidly as fuel costs continue to fluctuate. This article explores how fuel prices are shaping the used car market in 2025, which models are most affected, and what that means for you as a buyer.

 

Why Fuel Prices Matter More Than Ever

For most drivers, fuel is one of the biggest ongoing expenses of car ownership. Even a small change in price per litre can add hundreds of pounds to your annual motoring costs. When prices rise sharply, many people reconsider whether they really need a large engine or a second car. When prices fall, interest in high-performance vehicles, luxury SUVs and large estates often increases again.
This cycle has been repeated for decades, but the speed at which demand shifts is now faster than ever. Online research tools, fuel comparison apps and changing attitudes towards sustainability have made drivers far more reactive. As soon as the cost of filling up rises, buyers begin searching for more economical models, which quickly drives up demand and prices in the used market.
Fuel-efficient cars, especially smaller hatchbacks and hybrids, tend to sell faster during expensive fuel periods. Larger cars with higher consumption may lose value temporarily until prices stabilise again.

 

 

The Turning Point: Post-2022 Market Trends

The sharp rise in petrol and diesel costs during 2022 marked a turning point for the UK car market. Diesel demand, already affected by emissions legislation, fell further as prices increased and low-emission zones expanded across major cities. Petrol cars regained market share due to their versatility, lower maintenance costs and cleaner emissions compared with older diesels.
At the same time, interest in hybrids and plug-in vehicles grew significantly. Many drivers saw these models as a safe middle ground between traditional combustion and full electric power. They offered lower running costs without the range concerns or infrastructure limitations that can come with electric vehicles.
At Stebbings, we saw this transition clearly. Demand for smaller, fuel-efficient petrol cars such as the Ford Fiesta and Volkswagen Polo rose sharply, while buyers also began asking more questions about hybrid and electric options. Fuel efficiency became a top priority, not just a nice-to-have feature.

The Rise of Hybrids and Plug-In Models

As petrol and diesel prices climbed, hybrid technology started to appeal to a much wider audience. Self-charging hybrids like the Toyota Corolla, Lexus CT and Honda Jazz have proven reliable and practical for daily use, especially for short commutes or town driving. They offer a quieter experience, smoother acceleration and excellent fuel economy.
Plug-in hybrids (PHEVs) have also become increasingly popular. They allow short distances to be driven entirely on electric power before the petrol engine takes over for longer journeys. This flexibility is ideal for drivers who want to reduce fuel use without fully committing to an electric vehicle.
At Stebbings Car Superstore, we have expanded our range of hybrid and plug-in models to meet this growing demand. You can explore our latest used hybrid and electric cars online or visit our King's Lynn showroom to compare real-world performance and running costs.

Why Diesel Still Has Its Place

Diesel engines have been under pressure for several years due to tightening emissions rules, but they still have advantages for the right type of driver. Modern Euro 6 diesel cars are far cleaner than their predecessors, and for motorists who drive long distances, they remain one of the most cost-effective options available.
A diesel car such as the Ford Focus or VW Golf can achieve exceptional motorway fuel economy and deliver strong pulling power, particularly for towing or carrying heavier loads. Business users and high-mileage drivers continue to choose diesel because its efficiency over long runs often offsets the higher pump price.
At Stebbings, we help buyers determine whether diesel is still the right choice based on their mileage and driving habits. We also ensure every used diesel we sell meets modern emissions standards for peace of mind.

Petrol Cars Remain the Core of the Market

Despite the rise of hybrids and electric vehicles, petrol cars remain the backbone of the UK's used car market. They are more affordable to buy, easier to maintain and better suited to short or occasional trips. Advances in turbocharging and lightweight engineering mean that even small petrol engines now deliver excellent performance with reduced consumption.
The Ford Focus EcoBoost, VW Golf TSI and Hyundai i10 are standout examples of modern petrol efficiency. These engines provide strong acceleration while remaining cheap to run, making them attractive to both first-time buyers and families looking for a reliable second car.
Petrol models also tend to offer broader choice and lower insurance premiums, which makes them particularly appealing to younger drivers. You can view our current used petrol cars for the most popular options at our King's Lynn showroom.

The Growing Impact of Electric Vehicles

Electric vehicles (EVs) have become a key factor influencing fuel demand even among drivers who have not yet made the switch. Rising energy costs have created uncertainty, but electricity remains relatively stable compared with petrol and diesel. Many buyers now see EVs as a way to gain long-term control over running costs.
However, the used EV market is still developing. While more affordable than before, older electric models often have shorter ranges and higher battery replacement costs. Charging infrastructure, although improving, can also be a limitation for rural drivers.
For this reason, many customers opt for hybrids or plug-in hybrids first. They deliver much of the fuel-saving benefit of full electric cars without requiring constant access to charging stations. Stebbings provides guidance on the advantages of each type of powertrain to help you make a confident decision.

How Fuel Prices Influence Used Car Values

Fuel prices have a direct effect on car valuations When prices are high, fuel-efficient models gain value because demand rises. Conversely, larger engines and less efficient vehicles may see prices drop as buyers focus on affordability.
This was particularly visible in 2022 and 2023, when compact cars like the Fiesta and Polo increased in resale value while large SUVs slowed down in turnover. The effect works both ways. When prices stabilise or drop, buyers often return to comfort-oriented vehicles and performance models, creating excellent value opportunities for those ready to buy.
Being aware of these cycles allows you to make strategic decisions. If you plan to keep a car for several years, focusing on fuel economy and long-term reliability will protect your investment against future price fluctuations.

 

 

What This Means for Used Car Buyers in 2025

Fuel costs will remain unpredictable. That means choosing a flexible and efficient vehicle is more important than ever. Buyers in 2025 are likely to continue favouring smaller petrol cars, hybrids and plug-in hybrids that deliver balanced performance and affordability.
At Stebbings, we advise our customers to think beyond short-term savings. A car that achieves better miles per gallon and meets low-emission standards will not only save fuel but also retain its value better over time.
Drivers who only cover short distances each week might find that a compact petrol or hybrid hatchback is the ideal option. Those who drive longer distances should still consider diesel for its efficiency and torque. And for households with multiple cars, adding a hybrid or plug-in model can help reduce the overall cost of fuel across the family.

 

How You Can Adapt as Prices Change

If you are planning a purchase this year, a few practical steps can help protect you from fuel price uncertainty. The first is to research real-world fuel consumption figures, not just manufacturer estimates. Look at owner reviews and independent test data for an accurate idea of costs.
Next, think about your driving pattern. If you mostly drive locally, a small petrol or hybrid car will likely suit you better than a large diesel SUV. On the other hand, if you regularly travel hundreds of miles on the motorway, a diesel could still be the most efficient and durable choice.
Finally, consider resale value. Fuel-efficient and low-emission cars tend to hold their value longer. At Stebbings, we keep track of these trends so we can recommend models that will remain desirable even as the market changes.

 

The Bigger Picture: Sustainability and the Future of Driving

Beyond short-term cost, fuel prices are driving broader change in how people think about cars. Environmental awareness, cleaner city policies and the UK's transition toward electric mobility are all influencing demand. Consumers now balance running costs with a growing desire to make more sustainable choices.
Manufacturers have responded by producing hybrid and mild-hybrid versions of popular models like the Ford Puma and VW Golf. These provide tangible savings without the need for lifestyle changes associated with full electric ownership.
By offering a mix of efficient petrol, diesel and hybrid vehicles, Stebbings ensures that every customer can find a car suited to both their driving needs and their environmental goals.

 

Why Buying from a Trusted Dealer Matters

Choosing a car during a period of fluctuating fuel prices can feel daunting. A trusted used car dealer provides reassurance by verifying that vehicles are in top condition and deliver the efficiency they promise.
At Stebbings Car Superstore, every car undergoes a comprehensive inspection and preparation process. Our team checks service histories, verifies mileage and ensures emissions compliance before any vehicle goes on sale. We also provide a range of car finance options to make buying more affordable and flexible.
Customers in King's Lynn and across Norfolk rely on us for clear, transparent advice. Whether you are trading in, upgrading or purchasing your first vehicle, we will help you choose a car that fits your lifestyle and protects you from rising running costs.

Smart Buying Tips for 2025

If you are in the market for a used car this year, take the time to understand how each model fits your budget and driving style. Look for vehicles that combine comfort and reliability with strong economy.
Hybrid hatchbacks, compact SUVs and smaller petrol models are currently the most resilient choices against volatile fuel prices. Remember to check insurance costs and tax bands, as they can also impact long-term affordability.
You can browse the full range of used cars on our website or visit our showroom to speak with one of our friendly sales advisors. If you have specific questions about economy, emissions or model comparisons, contact us for expert advice.

Conclusion

Fuel prices will continue to rise and fall, but understanding how these shifts affect the used car market helps you make a smarter purchase. Efficient petrol and hybrid models are gaining popularity, diesel remains relevant for long-distance drivers, and electric options are expanding every year.
At Stebbings Car Superstore, our mission is to help you find a car that meets your needs today while remaining practical for the years ahead. Whether you are focused on fuel economy, value retention or eco-friendly driving, our expert team is here to guide you.
Visit our used cars page or stop by our King's Lynn showroom to explore models that keep you ahead of the curve — whatever happens to fuel prices next.

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Stebbings Car Centre Limited t/a Stebbings Car Superstore is authorised and regulated by the Financial Conduct Authority. FRN 679281. We are a Credit Broker not a Lender and can introduce you to a limited number of lenders. We may receive a commission for introducing you to a funder. If we do this will be based on a fixed % of the advance and the amount will be communicated to you before you enter into an agreement. Stebbings Car Centre Limited t/a Stebbings Car Superstore is an Appointed representative of AutoProtect (MBI) Limited FRN 312143 authorised and regulated by the Financial Conduct Authority. Our permitted business is arranging general insurance and finance contracts.

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